Fortescue Ltd (ASX: FMG) shares have a reputation for generous dividend payments, but is this changing?
The miner has a payout policy of returning 50% to 80% of full-year underlying net profit after tax (NPAT) to shareholders as dividends.
In FY25, the pure-play ASX 200 iron ore miner paid an annual dividend of $1.10 per share, equating to 65% of NPAT.
NPAT fell substantially in FY25, coming in at US$3.4 billion, which was 41% lower than FY24.
The miner reported 198.4 million wet metric tonnes of shipped iron ore for FY25, up 4% on FY24.
The FY26 guidance is 195 to 205 million wet metric tonnes.
The consensus expectation among analysts on the CommSec platform is that Fortescue will pay substantially lower dividends from here.
The current consensus forecast for FY26 dividends is 92.3 cents per share.
Based on a Fortescue share price of $21.80, that equates to a pretty modest dividend yield of 4.2% (with full franking).
The forecast for FY27 is 82 cents per share, or a yield of 3.75%. The forecast for FY28 is 75 cents per share, or a yield of 3.4%.
With all that said, here are the dates for Fortescue's dividend announcements next year.
When will Fortescue announce its 2026 dividends?
Fortescue will announce its 1H FY26 results and interim dividend on 25 February.
The full-year FY26 results and final dividend will be revealed on 24 August.
We'll get quarterly production reports on 22 January, 23 April, 23 July, and 22 October.
Fortescue will hold its annual general meeting on 29 October.
What happened to the Fortescue share price this year?
The Fortescue share price has increased by more than 15% in 2025.
The iron ore price remains above the psychological threshold of US$100 per tonne, and has risen 3% this year.
In October, Fortescue reported a first-quarter record in total iron ore shipments at 49.7 million wet metric tonnes.
However, this was 10% lower than 4Q FY25.
Should you buy Fortescue shares?
Analysts are divided on Fortescue shares.
Ord Minnett reiterated its buy rating on Fortescue shares following the September quarter production report.
The broker has a share price target of $21.50 on the ASX 200 mining giant.
Bell Potter upgraded its rating on Fortescue shares to a hold with a price target of $19.30.
UBS reiterated its hold rating with a price target of $20.
Macquarie reiterated its sell rating on Fortescue shares with a price target of $18.50.
Jarden also has a sell rating with a price target of $16.
